industry news
October sees consumer spending decline by 0.1 per cent as restrictions and colder weather encourage Brits to stay indoors
Consumer spending declined 0.1 per cent year-on-year in October, as the introduction of further restrictions and the arrival of colder weather encouraged Brits to stay at home and turn to online shopping. Data from Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, reveals that spending on essential items grew 4.2 per cent year-on-year, steadied by a 13.9 per cent rise in supermarket expenditure – though this was the smallest increase in the category since February 2020. Spending on non-essential items declined 1.7 per cent, compared to the 0.6 per cent growth seen last month. Clothing fell 2.7 per cent overall, though a 20.6 per cent growth was seen in online clothing as the nation chose to shop from home instead of venturing to the high street. Spending at department stores also contracted by 9.9 per cent, down from the smaller 0.2 per cent decline seen in September. Home deliveries remain popular as online supermarket expenditure saw 94.4 per cent
growth, accounting for 13.7 per cent of total supermarket spend compared to 13.0 per cent last month. This comes as a third (33 per cent) of Brits say they are stockpiling essentials in preparation for potential shortages. However, boosted by early Christmas shoppers,
general retailers and catalogues saw growth of 50.0 per cent in October. Food and drink specialist stores, including butchers and greengrocers, also rose by 50.7 per cent as nearly half of shoppers (48 per cent) looked to support local businesses. As the winter months approach, more time spent indoors also meant more hours browsing the internet. Overall online transactions grew by 29.0 per cent in October, accounting for 45.7 per cent of all retail spend this month – a steady rise from August (44.0 per cent) and September (43.4 per cent).
Spend on digital content saw its highest uplift (32.3 per cent) since the first national lockdown eased in July, while takeaways stayed strong at 18.3 per cent growth, as many embraced dining in with a box set.
The restrictions are impacting consumer optimism, as household confidence dropped to 67 per cent – a level not seen since May (also 67 per cent) and down from 70 per cent last month. Confidence in the UK economy also remains low (22 per cent), with less than half as many over-55’s (15 per cent) as 18-34-year-olds (34 per cent) feeling confident.
Raheel Ahmed, head of consumer products, said: “As Brits once again adjust to tighter restrictions, it’s no surprise that the digital habits adopted earlier this year are enduring. As we enter another period of lockdown in England and further restrictions across the UK, this stay-at-and home mentality is likely to persist, as is the popularity of takeaways and digital subscriptions – helped along by the colder weather and darker evenings. “As the country prepares for a winter under
potentially tighter restrictions, and we turn to online for our Christmas shopping, the resilience of bricks-and-mortar retailers will be tested as we wait to see what the rest of the year brings.”
GIMA 2021 New Product Digest now live
The annual showcase of innovation from GIMA members – the GIMA New Product Digest – is now available, providing retailers with a comprehensive guide to the latest product innovations, point of sale and marketing initiatives ahead of the 2021 spring/summer season. For the first time, the GIMA New Product Digest will be available as a digital e-catalogue and e-newsletter, providing retailers with over 50 pages of brand new content, no mean feat when you consider that these suppliers have been faced with twin obstacles in the shape of the Covid-19 pandemic and unprecedented supply chain pressures. The Digest features lots of well-known brands
as well as some new faces. Together these brands provide an unrivalled showcase of innovative thinking, covering all sectors of the garden retail sector including pots and planters, landscaping, barbeques, garden décor, cleaning solutions, sheds, GYO essentials, fertilisers, compost, seeds, furniture, water gardening, bird feed, lighting, tools and lawn care.
Internet garden market set to achieve 25% growth in 2020
In 2020, the Internet garden products market is estimated to achieve growth of 25%, profiting from the surge in Internet usage as a result of the coronavirus pandemic.
4 |
www.gardencentreupdate.com
According to the latest Internet Garden market report from AMA Research, it is likely that online sales will continue to expand as social distancing measures remain in place, constraining in-store retailing for the remainder of 2020 and potentially into 2021. Online shopping is following an upward
trajectory, with 87% of UK adults shopping online in 2020. As both fixed and mobile Internet speeds increase, and smartphone ownership expands, it is likely that more consumers will use the Internet for shopping in the coming years. Consumers are also becoming increasingly aware that cheaper prices can be found online, with price comparison websites facilitating easy comparisons. Product research via blogs, reviews, social media and YouTube is likely to cause an increase in purchases of garden products online. During April, May and June Internet sales
accounted for 31% of total retail sales in the UK, compared to 19% in 2019. Correspondingly, the value of the Internet garden market has risen significantly in 2020. In addition, demand for garden products was notably high during lockdown with consumers spending more time at home during the sunniest Spring on record. Items such as barbecues and grow-your-own products were particularly popular online purchases during the lockdown period, contributing to estimated market growth of 25% in 2020.
GCU Winter 2020
Market growth continues to be underpinned by the popularity of ‘click & collect’ services. Whilst home delivery lead times have improved considerably in recent years with next day delivery being a common requirement, many consumers prefer the convenience of collecting items from a local store. Online promotions have also helped to sustain market growth. It is expected that the Internet garden market will continue to increase to 2024, although the amount of growth will be dependent on the recovery of the retail sector post-lockdown. Lower growth levels are forecast after 2021, assuming that in-store retailing begins to recover, with annual growth of around 8% forecast towards the end of the review period as the market begins to mature.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36
